It's on order and should arrive around early September.
I've been shopping around for the best finance and am getting some bizarre responses. Savings and Loans CU had the best interest rate by far but (8.17%) once you put the ridiculus insurance on the loan the repayments end up the same as Jayco's 10.4% finance. ANZ wanted 14.5%! (I think Barbara from bank world would offer better then that!)Anyone have have any suggestions on who to approach. The van is costing $50,000 and we are borrowing $45,000.

Just a quick question .
Do you or are you a mortgagee ?
If so can you add the New Jayco to the home loan ?
If you can use some of the equity from your house its much cheaper than any other borrowings and its spread over your home loan period.

Ron


Ohh and Congrats on the New Toy.

Hi,

I just had to laugh re: Barbara from bank world comments!! Can you incorporate into a home loan? or would you consider a broker?

Cheers

CCI (consumer credit insurance) on borrowings is optional and a lender cannot make it a condition of approval, a condition of getting a better interest rate or better conditions.

8.17% p.a. is very sharp pricing if on an unsecured or personal lease basis.

As others have mentioned, adding to an existing home mortgage - or a separate facility secured against residential property is the only way you will see a rate better.

I am a licenced finance broker.



Cheers.



Mike

Hi Guys, I'm trying to avoid the home loan option coz I want to buy another investment property early next year and my capital in the house will help me with that. (plus the new property has a big shed for the van to be stored), I'm trying to either use a finance company or a bank that doesn't have their head up their bums :0

on buying mine; deposit (cash), trade in (worth very little) left a large 'finance' hole, however there was redraw enough in one of the mortgages (so maxed it out).
the brokers (when looking for investment) consider your whole position; the add up your cc as IF they are maxed, total all loans and add 2% increase to the interest rates to determine 'servicability' for the new loan.
taking a seperate loan at greater than 'home loan rates' is self defeating as your sevice ability is decreased, i'd suggest the 'add to home loan' option but structure your repayments such that the 'extra' loan is repaid at 'consumable products' rate (i.e. paid off in 5 years or less).

14.5% is standard for barbara (anz employee of the year) the other rate is probably secured against the van.

not broker or banker; just the owner of 250 years of mortgages;

Hi JuJu,

Don't want to be a killjoy and fully agree with the "do it now" mantra, but have you considered a 2-3 year old model? You'd probably save a decent amount on a new price and might even get a lot of extras included too (Eg. extra batteries, full annex, Trail-A-Mate Jack).

Don't know if you can cancel your order, but if you're sure you want new, I'd perhaps try and save up some more money in an investment account and perhaps go for next year's model - (Only 5 months of the year left). That way you'll save heaps on the interest and have less to borrow next year.

There's nothing worse than worrying about money and re-payments in regard to a leisure item....takes the enjoyment away!

If you are definitely going ahead with it now, then your best bet is consolidating the van onto your home loan, as others have advised. Personal loans are a killer!

Good luck and enjoy!

Hi Sal, We are definately going ahead with the order as this particular model suits us in every way and also was 15k less than what we had budgeted for. I'm not worried about making the repayments just would like to get the best bang for my buck when it comes to finance. Just like competition in the caravan industry is good for consumers the same also applies to the finance industry. My only beef really is that the banks are only interested in you if you want a home loan so your stuck with finance companies which love the Compound Interest angle. The more research I do the more I'm conceding that the home loan option may be the only one thats competitive.... or as the love of my life Barbara would say "thats option 1!"

What i want to know is how do you get a loan for $45,000.Whoever you went with would firstly want to know if you could service the loan,that would take into account your mortgage payments any other loans you may have etc etc,most of them would want your house as security i would suspect.If you did go the equity on your house the benefit is to your lender as if you cant pay the loan for some reason they get the house.Your caravan will depreciate over time to a certain level but you will still have the loan to service with added interest rate rises to contend with.I know you probably cant pull outa the caravan deal,but it would have been better to buy a second hand caravan that has depreciate .There are some awesome buys out their for thousands less.Overall this way you wouldn't be paying the banks as much profit or the caravan sellers.Just my way of thinking i might be totally wrong.Cheers Neil

You'd be surprised how many lenders will offer totally unsecured borrowings up to $50,000.

I've arranged a facility for clients of $65,000 - debt consolidation and they were not property owners.

Applicants with equity in property or other tangible security, can often obtain unsecured funding based on their ability to service and statement of position.




Or the asset is sold to payout the loan, but ultimately a lender does have the right to take possession of security and sell it to recover the debt.

The advantage to the borrower is lower pricing on their loan compared to an unsecured or lease transaction.

Whilst some people are hesitant to borrow for perceived luxury items (prefer to pay cash), there are those who have the capacity and ability to borrow now rather than accumulating the funds to pay cash for the item.


Look at it another way:

Someone borrows $50,000 over 5 years with repayments of $1,000 a month. Total repayments - $60,000 so $10,000 interest.

If they decided to save up the money over 5 years instead of borrowing it, how much would a $50,000 caravan cost in 5 years time?


Most likely more than $60,000. And the intangible value is that the van can be used now rather than waiting 5 years.

Our previous van, a Jayco Swan, was about $15,000 new in 2005 - they are almost double that price now.

So there is some logic in borrowing to buy things now - if the buyer has the comfortable ability to do so.






A lot of unsecured loans are fixed rate facilities. Whilst the value of a new van may lessen, the term of an unsecured loan is generally over a shorter term (5-7 years) so the initial debt is repaid at a far accelerated rate compared to a typical home mortgage.



Cheers.



Mike